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New Mexico aging entity to be audited

Dan Boyd, Albuquerque Journal
Published 12:17 p.m. MT Jan. 19, 2018

State Auditor Wayne Johnson says his office will conduct a special audit into possible financial wrongdoing on the part of a regional management entity that provides various services for roughly 70,000 elderly New Mexicans and their caregivers.(Photo: Jupiterimages, Getty Images)

SANTA FE - State Auditor Wayne Johnson says his office will conduct a special audit into possible financial wrongdoing on the part of a regional management entity that provides various services for roughly 70,000 elderly New Mexicans and their caregivers.

The audit announcement is the latest twist in a case that's prompted sniping between Gov. Susana Martinez's administration and some Democratic lawmakers.

Johnson, a Republican appointed auditor by Martinez in November, said his office would scrutinize billing practices, vendor reimbursements and compliance with federal grant guidelines by the Non-Metro Area Agency on Aging, which is one of four such entities operating in New Mexico.

Specifically, he said a state agency's decision to sever its contract with the management entity — effective Feb. 1 — raised questions that "must be addressed."

The Aging and Long-Term Services Department announced last month that the department was ending its contract with the Non-Metro Area Agency on Aging.

Acting agency secretary Kyky Knowles claimed the management entity had overbilled the state by more than $450,000 by overcharging for administrative expenses and submitting inflated reimbursement requests.

However, Rep. Deborah Armstrong, D-Albuquerque, a former agency cabinet secretary, has questioned whether Knowles' agency followed appropriate procedures — including holding public hearings — before deciding to cancel the contract.

She and other legislators also have expressed concern about possible disruptions in a system that provides home-delivered meals, transportation and job-finding assistance for thousands of seniors.

The regional entity has a $20 million annual contract to work with providers in most of New Mexico, but not in Bernalillo County. It is run by the North Central New Mexico Economic Development District, whose board of directors includes legislators, business owners and other elected officials in eight northern New Mexico counties.

Top board officials have suggested there may have been a misunderstanding of sorts over the contract's scope.

After the contract is officially severed, the state intends to take over the regional entity's day-to-day duties for up to six months, or until a new plan can be put in place.

Depending on the outcome of the special audit, Johnson's office could refer findings to Attorney General Hector Balderas for further investigation.